Five Reasons Why Personal Loans Might Be Your Best Option

Personal loans are, as the name suggests, the perfect option when personal expenses are concerned. You could use them for home improvements, pay off all your credit card debts or even buy a car. Also, you can do all this and pay off the amount in installments at low interest, spread over a long period of time. However, there are some key things that make personal loans the absolute best option, and they are as follows.

1. Ample Borrowing Limits – For personal loans and the kind of expenses they are meant to provide for, the borrowing limit of £15,000 is sufficient. However, you might find some lenders who even offer £25,000 borrowing limit for personal loans. Apart from that, the approval is often quick and simple. You can get it done over the phone and the amount would be made available to you in a mere few days.

2. Sufficient Time Period – Personal loans are best for those expenses which would take you more than a year to pay off, otherwise you could go for your credit card. However, the time period that is provided is usually enough and comfortable for paying off the loan. In usual cases, the time period is 7 years maximum but some lenders also provide it for 10 years. You can conveniently spread the entire amount over that time period and pay off the loan at your own pace.

3. Stable Interest Rates – The rate at which you pay off the loan would always be fixed. People might argue that this might not be as sweet a deal as it is made out to be but thinking practically, the average person does not want the headache of fluctuating rates. Yes, the rates might be better for those who take the loan 6 months later but they could also we worse. When it comes to your personal loans and finances, you want the least amount of risk possible. As a word of advice, direct debit is recommended.

4. Unsecured – With mortgage payments and other similar options, there is always the fear of failing to pay off the loan and losing your house or other precious asset. In personal loans, however, even if you fail your loan repayment, there would be no repossession of your house from the lender. This gives all borrowers a certain peace of mind, knowing that their assets are safe.

5. Easily Provided – The providers of personal loans are many like building societies, supermarket chains and, of course, banks. These loans are provided at competitive rates. Although, it is best to avoid small sized firms that no one has ever heard of because the redemption penalty can be pretty high in this heavily regulated industry. If you choose to go for a reputable firm, you would be charged only around 2 months of interest as penalty, in case you choose to pay off the loan early.

There is a large choice of lenders to choose from, including such banks as Clydesdale Bank.